An Appraisal on Dividend Policy of Bata Shoe Company Bd. Limited

1. Introduction:Dividend policy refers to the policy chalked out by companies regarding the amount it would pay to their shareholders as dividend. These policies shape the attitude of the investors and the financial market in general towards the concerned company. Bata is a global company with activities on five continents controlled by four Meaningful Business Units (MBU). Each of these units specializes in region-specific tasks, such as product development, purchasing, or marketing support. Each MBU is an independent business entity, able to quickly adopt to market changes and/or use growth opportunities.

2. Over View of the Corporation:The Bata Shoe Organization was founded in 1894 by Czech businessman Tomas Bata in the city of Zlin, what was then Czechoslovakia. Coming from a family of shoemakers with a long heritage of eight generations and over three hundred years, Tomas Bata capitalized on knowledge, expertise and skills to propel his newly founded company forward. The introduction of factory automation, long distance retailing and modernized shoe making ensured the profitability of the company from the very beginning. It is now the world’s largest manufacturer and marketer of footwear operating across the globe. Today the Bata Shoe Organization is a sprawling geo-centric company encompassing operations in more than 70 countries around the world and is managed by 3 Meaningful Business Units (MBU) across five continents. It serves over 1 million customers per day, employs more than 50,000 people, operates more than 5,000 retail outlets, manages retail presence in over 70 countries and runs 27 production facilities across 20 countries. In Bangladesh, Bata started its operation in 1962. The company is one of the largest tax–paying corporate bodies contributing Tk. 1.2 billion (year 2009) which represents approximately 70% of tax paid by the entire footwear sector of Bangladesh. Currently Bata Shoe Company (Bangladesh) Limited operates...